As long as you are studying, your parents' sole agenda is to remind you of the importance of studies. And if you think this 'reminder' would be over once you start working, you can't be any farther than the truth! Just that once you start working, this reminder converts into 'importance of savings'. And to be true, they aren't completely wrong. As much as you want to enjoy and break loose with your first few salaries, it is imperative that you inculcate the habit of saving a good portion of your pay cheque from your first job itself. If you still want reasons to start saving early, we have a complete list for you here!
- Money has a habit of reproducing!
It is simple! The more money you keep in your Bank account, the more interest you earn! And if you open a fixed / recurring deposit, the rate of interest would be even higher! In short, if you have your eyes set on an expensive smartphone or similar items, this habit can surely help you reach there much earlier.
- Helps you pursue your dreams
Are you one of those who wanted to launch their own venture but ended up with a job only to pursue your big plan some time later? The people belonging to this category MUST save from their very first salary in order to ensure that 'sometime later' doesn't turn into many years! It is commonly assumed that before you quit your job to look for something new, you must have ATLEAST one year's salary saved in your account, due to the simple reason that when you are looking to set up something new, cash flows out of your hand much faster than you assume!
You can never be sure when the next 'bad patch' hits you. At a time when a simple disease may dent your pocket by thousands of bucks, god forbid, if you end up with something serious, you wouldn't want to turn up to your family for financial help. Adding to it, you must invest in a medical insurance which would cover up for your expenses in case of any medical emergency. The lesser your age, the lesser premium you would have to pay for such insurance schemes.
We know that retirement seems like a long way down the road when you have just joined your first job, but you can only neglect it at your own peril. Being farsighted would surely pay rich dividends in the future. Also, the earlier you start saving, the lesser amount you would have to shell out monthly in order to safeguard your life post the retirement.
There are millions of other reasons which would compel you to start saving money as soon as possible. Have you ever experienced the joy of saving money? If yes, share it in the comments below!